Hank Wasiak: Social Media Changes Fundamentals of Advertising

Hank Wasiak (@hankwasiak) is an advertising leader with a distinguished resume “a-mile-long” and I seriously enjoyed the talk he gave at the 140 Conference Tuesday.

He is teaching a class at the Graduate School of USC’s Marshall School of Business in January 2010 called, “Advertising and Promotion Strategy.”140 Characters Conference

First Clip (2:57):

Mr. Wasiak  says to the effect that what business school is currently teaching is out of touch with the “actuality” of advertising.”

He also says that there is “doom and gloom” in the advertising business but that his own enthusiasm is higher than ever.   His enthusiasm is “fueled by social media,” which he says is, “changing the fundamentals of marketing and advertising.”

He states that social media changes marketing and advetising in the following ways:

  1. The marketing mix
  2. The way we look at advertising
  3. The metrics by which we measure its success

He says to the effect that he started in the advertising business in a Mad Men environment 40 years ago in NYC and that it has not really changed until now – now, due to social media.

Second Clip (3:48):

Mr. Wasiak says there used to be four “P”s  or “pillars” of marketing:  Product, Price, Place, and Promotion.

He to the effect says that “social media was placed under the “Promotion” category initially.”  But he maintains that there is a now a 5th “P” or “pillar:”  People

“If a company does not have  a people strategy, it should close up shop,” says Mr. Wasiak.

He also states that the old maxim in advertising was AIDA:  Attention, Interest, Desire and Action.

Mr. Wasniak says to the effect that business needs to add the following new letters:

  1. “E”  Engagement — Consumers want to talk amongst selves before talking to you as a brand
  2. “S”   Sustainability/Sharability — That the work created live well beyond the context it was created in
  3. “E”  Ethics of success

After attending the World Business Forum, Mr Wasniak says he noted that companies that used to look at “hard assetts” were now looking at what he called, “soft assetts.”

Companies now focusing on:

values and culture based company
purpose driven and passionate marketing
trust and truth
healthy and happy and act like human beings — the companies themselves
Ironically these are the words of social media itself, right?
  • Values and culture
  • Purpose driven and passionate marketing
  • Trust and truth
  • Responsbility
  • Collaberation
  • Aspiration
  • Health and happiness and the companies themselves acting like human beings.

He says to the effect that the aforementioned are the words of Social Media itself.

Third Clip (2:44):

Mr. Wasniak says there’s an apparent new, three-tiered concept of Profit emerging.

  1. Dollars (traditional)
  2. Emotional profit of stake-holders
  3. Greater good of the surrounding community

He sees a “mindset makeover” from “shouting-and-selling” to “sharing-and-helping” and that business should invest the same time in conversation with customers as it does on creating. And he suggests that business will “give up control to get traction.”

He says we need to go from Don Draper, “Masters of The Universe” to Maestros “connecting a symphony of very communicative communications.”

Mr Wasiak used the word that’s a mixture of two nouns, “Collabetition.” It apparently means that instead of saying they can “do it all” ad agencies and others they will work together with competitors in the same market to deliver A+ ideas for clients.  He sees a new business model for everything from compensation program to ego gratification.

Mr. Wasiak says that Don Draper would not like the world described.  But Mr. Wasiak does like said world.

Frankly, I think Hank Wasiak is hitting the nail on the head.